Cake Box Holdings PLC (AIM:CBOX) boosted profits in the year to March but remains wary of an “increasingly challenging economic and trading environment”.
Gross profit was up 45% to £15.8mln for the 12 months ending 31 March 2022, while revenue was 50.7% higher at £33mln. Adjusted pre-tax profit jumped 48.9% to £7.7mln.
The company raised its final dividend to 5.1p from 3.7p, lifting the total payout for the year to 7.6p from 5.55p the year before.
“Despite a challenging economic and trading environment, we have delivered yet another strong set of results and continue to trade robustly post period end,” said chief executive Sukh Chamdal.
While sales remained robust in the post-period months, the board remains cautious that current macro conditions will make for a challenging environment.
“These are difficult times for everyone, but as we've seen before, the group's unique customer and franchisee proposition remains both exciting and enticing,” Chamdal added.
The baker of customised egg-free cream cakes also improved its cash position, up from £5.1mln to £6.6mln.
Operationally, the group opened 31 new franchise stores, taking the total in operation to 185, as well as opening a new warehouse to support expansion.
Looking forward, the company will invest in further store openings, marketing and “digital capabilities,” according to a statement.
Further to that, the group also said it will invest in senior leadership to improve governance and processes to support a larger franchise estate.